Consumers Shrug Off Loyalty Program Messages

Retailers are spending increasing amounts of time and money creating mailings, e-mails, Web site messages and Facebook posts, touting their loyalty reward programs, but according to a recent study, too many of those messages are totally missing the mark.

According to results of a consumer survey released recently by Direct Antidote, a LoyaltyOne company, only one-third of U.S. consumers rated reward program communications eight or higher on a one to 10 scale measuring relevancy to their personal needs. (One being "not at all" and 10 being "extremely relevant").  Nearly 70 percent rated them a score of seven or below.

Despite marketers devotion to customized messaging, consumers across all demographics gave messages about annual points balance reports, special earning offers and other program information  just average relevance scores. Seniors reported the lowest perceived relevance, with a 5.7 mean score. Young adults and Hispanics ranked them the highest: each group giving the messages a 6.9 rating. 

The Direct Antidote research, based on 2,152 completed surveys from consumers nationwide, looked at loyalty rewards communications.

Loyalty programs can be very effective. But retailers and marketers need to step up their efforts.

Di Cullen, president of Direct Antidote, offered these tips:

-- Create offers that appeal to the trends and values of the times, such as the green movement or recession-stoked consumer frugality;

-- Leverage partnerships with other brands to share data, drive down costs and drive up the value proposition to the consumer and explore alternative sources for information that is compelling to customers.

When trying to drive traffic, no one wants to spin their wheels.

-- Barb Grondin Francella

Comments

[Olivia]

Hi there,

Would love to get your personal feedback on loyalty/rewards programs: http://www.loyaltyleaders.org/consumer-survey.php

[Stefanie]

Di Cullen is the president of 'Direct' Antidote. See error in sixth paragraph.

[Tom]

The harsh reality appears to be people are loyal to your business as long as you offer the cheapest prices. Most customers you think are "loyal" will drop you like a hot rock if, for example, they can save 2 cents a gallon at someone else's location. See the lines at Costco? Those lines aren't due to customer loyalty.